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Cash Flow from Investing Activities

The number of...

Question

The number of production of similar units expected to be obtained from the use of an asset by an enterprise is called as ______.

A

Unit Life

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B

Useful Life

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C

Production Life

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D

Expected Life

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Solution

The correct option is B Useful Life
The number of production of similar units expected to be obtained from the use of an asset by an enterprise is called as Useful Life
Depreciation is a decrease in the value of the fixed assets due to wear and tear, obsolescence and passage of time.
Depreciation is charged only on the fixed Tangible Assets.

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